On Friday, the Pakistani rupee continued to strengthen against the US dollar in the open market, surpassing its value even in the interbank market.
Currency dealers reported that the rupee was quoted at 282 for selling and 279 for buying by buyers.
According to data released by the Exchange Companies Association of Pakistan (ECAP), the currency closed at 284 for selling and 281 for buying at the end of trade on Thursday.
The rupee was trading at 282 per dollar on the interbank market.
Currency dealers have noted that the increased supply of dollars in the interbank market is now evident in the open market as well. It’s noteworthy that, during this period, open-market rates are, unusually, lower than the prevailing inter-bank rates.
This surge in the value of the Pakistani rupee follows the State Bank of Pakistan (SBP) intensifying efforts to control the surging US dollar. Last month, the SBP unveiled a series of “structural reforms” targeting Exchange Companies (ECs).
In addition to these central bank measures, the interim government also took administrative actions to crack down on currency smuggling and hoarding. Consequently, there were reports of nationwide raids resulting in the closure of numerous illegal currency exchanges and the confiscation of millions of foreign currency.
This development is particularly timely for Pakistan as it prepares for the next review of its Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) scheduled for November.
